PNC Bank Business Loans Review

Pros and cons of PNC Bank

PNC Bank business loans review

PNC Bank is one of the largest traditional banks in the country, which may be appealing to borrowers who prefer to work with a traditional lender for their financing needs. In addition to small business loans, PNC offers checking accounts, savings accounts, merchant services and more, making this a good choice for small business owners who want to keep all their finances in one convenient place.

Further, with PNC, businesses also gain access to resources that can support them as their business grows, including Cash Flow Insight, which can help you track your cash flow and expenses.

PNC’s lending products include term loans, lines of credit, equipment financing and more, with loan sizes reaching as high as $1,000,000,000 for corporate clients. However, most of PNC’s loan options are geared toward well-established, creditworthy companies. And while newer businesses may be able to qualify for other credit solutions, PNC’s loans are typically only available for businesses that have been in operation for at least two years.

Still, for qualifying businesses, PNC might be a good option if you want to be able to compare a wide range of loan products in one convenient place. Just be sure to obtain a quote to understand the total cost of borrowing, as the lender isn’t overly transparent about its rates and fees.

PNC Bank small business financing at a glance

Term loans

PNC offers two types of business term loans, secured and unsecured. Unsecured loans come with smaller borrowing limits at PNC — between $20,000 and $100,000. But while PNC doesn’t share its rates publicly, interest rates on unsecured term loans tend to be higher than those offered on secured term loans.

You may need a secured term loan if you need to borrow more than $100,000, which typically offers longer terms of up to 84 months but requires you to pledge collateral.

Lines of credit

Like a credit card, a business line of credit allows you to borrow money when needed, only charging interest on the withdrawn amounts. This is a great option for covering day-to-day working capital expenses like payroll, inventory, marketing campaigns and more. PNC’s secured and unsecured lines of credit differ in the amount you can borrow and whether collateral is required.

Unsecured lines have a $175 annual fee and require a minimum payment of $100 or 1.5% of the balance owed, whichever is higher. Secured lines of credit carry an annual fee of 0.25% of the credit line, and PNC requires interest-only payments on any amount owed on a monthly basis. It’s wise, however, to make principal payments as quickly as possible to minimize your total interest charges.

Vehicle financing

You can borrow anywhere from $10,000 to $250,000 for a commercial or fleet vehicle with PNC, financing up to 100% of the vehicle costs. Loan terms can range from 24 to 72 months. And while PNC doesn’t publicly share rates on any of its products, its business auto loan interest rates are fixed with monthly payments deducted from your business checking account.

Commercial real estate loans

PNC’s commercial real estate loans require owner-occupied commercial real estate as collateral. You can borrow $100,001 and up with terms ranging between 60 and 240 months, amortized up to 25 years. If you have an amortization period longer than your loan term, you may be able to refinance at the end of your loan term. If you cannot, a balloon payment will be due at the end of the loan term.

SBA 7(a) loans

SBA 7(a) loans are notable for their generous repayment terms and comparatively low-interest rates. The maximum SBA 7(a) loan size at PNC is $5,000,000. PNC is charged annual and guaranty fees between 0% and 3.75%, and it may pass the guaranty fees on to you as a consumer.

PNC may also charge a prepayment penalty if your term is more than 15 years and you pay off more than 25% of the loan balance within the first three years of loan disbursement. Maximum loan terms are only 120 months, unless you’re borrowing for real estate needs — then, the term can extend up to 300 months.

SBA 504/CDC loans

SBA 504/CDC loans are typically used for commercial real estate needs, heavy equipment, construction, major renovations or business debt refinancing. The maximum amount on these loans tends to be $5 million unless you’re working on an energy-efficient or manufacturing project. Then, the maximum loan can go as high as $5,500,000.

SBA loan interest rates are about 3.00% of the total loan amount — a notable feature in today’s high-interest-rate environment. Terms can be up to 300 months.

SBA Express Lines of Credit

One downside of most SBA loans is that the approval and funding timeline can take 30 to 60 days, or even longer. SBA Express loans expedite that process, enabling the SBA to respond to your application within 36 hours. But in exchange for a faster turnaround time, maximum loan sizes are $500,000 at PNC, and collateral may be required for amounts above $50,000.

While PNC passes along guaranty fees to borrowers on SBA Express Lines of Credit, these fees can be waived for veteran-owned businesses.

Corporate and institutional loans

Larger companies seeking large loans to finance acquisitions, expansions and other high-growth situations may be able to receive as much as $1,000,000,000 (or more) with PNC’s corporate and institutional lending options. These options include term loans, lines of credit, equipment financing solutions and commercial real estate loans.

To qualify for commercial banking, businesses will need annual revenues above $5 million. Plus, PNC’s corporate products are reserved for companies making over $50 million a year.

PNC Bank borrower requirements

For most business lending products, PNC requires two years of business history. If you have a startup business, though, the bank may be able to work with you on creative funding solutions.

PNC isn’t overly transparent with a specific credit score requirement, but it does share some of its business loan requirements. The bank wants to see a clean credit history over the past five years, with no history of late payments, charge-offs, foreclosures, tax liens, judgements, lawsuits or accounts in collections.

And while there’s no explicit revenue requirement that’s shared publicly, PNC says that it wants to see “upward or stable trends” in terms of revenue, and your Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) should be more than the projected principal and interest payments on the loan.

Required documents

When you apply for a business loan with PNC, make sure to have the following information and required documents on hand:

• Business name and address
• Business type and year established
• Business tax ID number or EIN number
• Annual sales
• Number of employees
• Most recent business tax return

In addition, you’ll need the following information for each owner of the business:

• Home address
• Social Security number
• Title
• Ownership percentage
• Personal financial and historical information
• Most recent personal tax return

If you’re applying for a loan that requires collateral, you’ll also want to include any information about the collateral in your loan application.

Alternatives to PNC Bank

It’s common for well-established traditional banks not to disclose rates or specific underwriting requirements. Unfortunately, this lack of information makes it hard to adequately compare similar loan products before applying. That said, let’s look at how PNC stacks up against the competition across the available metrics.

PNC Bank vs. KeyBank

PNC and KeyBank offer similar loan products, such as business term loans, lines of credit, commercial real estate loans and SBA loans.

If your business needs access to more funds, an SBA 504 loan from KeyBank could provide up to $12,000,000 — although its SBA loans are only available in 17 states. And if your business needs flexible cash on a revolving basis, you could also get up to$500,000 with KeyBank’s SBA Express Line of Credit.

Still, newer companies might have better luck with PNC, since it only requires two years in business instead of three with KeyBank.

PNC Bank vs. Truist

Truist may be a better fit for businesses with small borrowing needs, as its loan amounts cap at $250,000.

Furthermore, Truist could help startups and recently established companies access the capital they need, as there’s no minimum time in business needed to apply. However, PNC could be the better choice if you want to apply for an SBA loan.